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Question 1064309: A manufacturer buys a new machine costing $120000 dollars. It is estimated that the machine has a useful lifetime of ten years and a salvage value of 4000 dollars at that time. Assume the value of the machine varies linearly during this time. Find a formula for the value of the machine after t years, where 0<=t<=10. Find the value of the machine after 8 years.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A manufacturer buys a new machine costing $120000 dollars. It is estimated that the machine has a useful lifetime of ten years and a salvage value of 4000 dollars at that time. Assume the value of the machine varies linearly during this time. Find a formula for the value of the machine after t years, where 0<=t<=10. Find the value of the machine after 8 years.
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Form:: V(t) = m*t + b
b is the value when time = 0 ; b is the initial value = 120000
m is the change in the value each year ; m is the slope ;
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Note:: In 10 years the machine loses 116000 in value
Each of the 10 years the value lost = -11600
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V(t) = -11600t + 120000
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V(8) = -11600*8 + 120000 = $27200
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Cheers,
Stan H.
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